Well Known activist investor JANA Partner continues to accumulate shares of Treehouse Foods Inc.

JANA Partners is a New York-based activist investment firm founded in 2001 by Barry Rosenstein. Specializing in event-driven and activist investing, JANA Partners seeks to create substantial value for its investors and stakeholders by acquiring significant stakes in underperforming public companies and actively engaging with management to drive strategic, operational, or governance changes. The firm is known for its hands-on approach, leveraging shareholder engagement to unlock value, and has also incorporated socially responsible and ESG-focused investing into its strategies in recent years. JANA Partners manages approximately $1.6 billion and has a history of high-profile activist campaigns in companies such as Whole Foods Market, ConAgra Brands, and PetSmart

JANA Partners has established a strong reputation for successful activist investments, particularly by targeting underperforming companies and driving strategic changes to unlock shareholder value. Notably, JANA took an 8.8% stake in Whole Foods Market in 2017, advocated for board and operational improvements, and ultimately profited significantly when Amazon acquired Whole Foods later that year. Similarly, JANA acquired a 10% stake in PetSmart in 2014, pushed for a sale, and benefited when the company was acquired for $8.7 billion by BC Partners. In 2018, JANA’s activism at Pinnacle Foods led to operational changes and a subsequent $8.1 billion acquisition by Conagra Brands, netting JANA a substantial profit. The firm has also influenced positive changes at ConAgra Foods and Frontier Communications, the latter seeing its stock rise nearly 50% following JANA’s involvement.

Beyond these, JANA has led activist campaigns at major companies like Apple, Tiffany & Co., Walgreens Boots Alliance, Safeway, Marathon Petroleum, and McGraw Hill, often advocating for board changes or strategic reviews. Through its activist strategies, JANA’s funds have consistently generated strong returns, cementing its status as one of the most effective activist investors in the US market.

Treehouse Foods Inc. originated from the specialty foods segment of Dean Foods Company, which had roots dating back to 1862 with the Green Bay Food Company, a pickle producer. In 2005, Dean Foods spun off this specialty division to form Treehouse Foods as an independent, publicly traded company focused on private-label packaged foods. Treehouse supplies these products primarily as private-label goods for retail grocery, club stores, foodservice, and co-pack customers across North America.

From its inception, Treehouse pursued growth through acquisitions, including Del Monte’s soup and baby food businesses in 2006, Bay Valley Foods in 2010, Flagstone Foods in 2013, and most notably, ConAgra Foods’ Private Brands business in 2016, which doubled its size and solidified its position as a leading private-label food manufacturer in North America. Following this expansion, Treehouse restructured to improve efficiency, selling its ready-to-eat cereal business in 2019 and appointing Steve Oakland as CEO in 2020 to emphasize operational improvements and organic growth. Today, Treehouse operates numerous production facilities across the U.S. and Canada, supplying major retailers and foodservice companies with a broad portfolio of products.

Treehouse Foods Inc. produces a wide range of private-label food and beverage products across shelf-stable, refrigerated, and frozen formats. Their portfolio includes crackers (such as saltine, cheese, graham, and sandwich creme cookies), pretzels (including seasoned twists, sticks, waffles, and peanut butter-filled varieties), candy (notably peanut butter-filled cups), and snack bars. They also manufacture non-dairy creamers with various flavor options, coffee (ground, whole bean, and foodservice formats), tea, powdered beverages and drink mixes, broths and stocks, refrigerated dough, hot cereals, cheese sauces and puddings, and pickles. Additionally, Treehouse offers in-store bakery items, griddle products like frozen pancakes and waffles, dressings, dips, gravies, jams, and other grocery items such as dry dinners, macaroni and cheese, side dishes, sweeteners, powdered soups, mayonnaise, flavored syrups, baking mixes, and liquid beverage enhancers. Their product lines include organic and gluten-free options to meet diverse consumer needs.

Treehouse Foods’ economic moat is rooted in its leadership position as one of North America’s largest private-label food manufacturers, which gives it strong, long-term relationships with major retailers and consistent demand for its products. The company’s extensive product portfolio and ability to quickly adapt to changing consumer trends provide a competitive advantage in the dynamic packaged foods sector. Treehouse also benefits from a large, efficient supply chain and manufacturing network, allowing for cost savings and rapid market response that smaller competitors struggle to match. Its emphasis on quality, safety, and innovation further strengthens its reputation and customer loyalty, especially as private-label products become more popular with value-conscious shoppers. By offering customized solutions for retailers, TreeHouse differentiates itself from branded competitors and becomes a preferred partner for private-label development. While competition from major branded food companies is intense, TreeHouse’s scale, operational efficiency, and deep integration with retail partners create significant barriers to entry for new private-label manufacturers and help sustain its competitive edge.

Can JANA Repeat Activist Success at TreeHouse Foods?

Shares Bought

6,565,300

Average Price 40.57/Share

Shares Sold

-743,963

Average Price 46.67/Share

Current Price 20.72

Total Estimated Gain -41.68 %

JANA Partners began acquiring shares in TreeHouse Foods during the fourth quarter of 2020, marking the start of its investment in the company. By early 2021, JANA had amassed a significant stakearound 7.4%and entered into an agreement with TreeHouse Foods to appoint two independent directors to the board. Over time, JANA increased its holdings, and currently more than 11.5% of TreeHouse Foods’ outstanding shares.

1. Belief in Undervalued Stock and Turnaround Potential

JANA Partners’ recent purchase in May 2025 of over $250 million in Treehouse Foods shares, even after a roughly 40% stock decline in the past year, signals a strong conviction that the company is undervalued and poised for a turnaround.. JANA has a history of targeting companies it believes are trading below their intrinsic value, seeking to unlock shareholder value through strategic changes.

2. Activist Influence and Strategic Involvement

JANA Partners is not a passive investor; it has secured board representation at Treehouse Foods and has actively advocated for strategic changes, including a potential sale of the company or divestiture of lower-growth business segments to focus on higher-growth categories like snacks and beverages. Their ongoing investment is likely tied to their confidence in influencing or overseeing these value-creating initiatives.

3. Insider Confidence and Alignment

The recent stock purchases were not limited to JANA Partners; TreeHouse Foods’ CEO Steven Oakland also bought shares at the same time, which is often interpreted as a strong vote of confidence in the company’s future from management.. Such insider buying can be a positive signal to the market that leadership believes the business is on the right track.

4. Cost-Cutting and Restructuring Efforts

Treehouse Foods has implemented significant restructuring and cost-cutting measures, including eliminating approximately 150 positions and centralizing functions, which are expected to improve profitability going forward. JANA’s increased stake comes as these changes begin to show early signs of success, with recent quarterly earnings exceeding expectations despite ongoing revenue declines.

Can JANA Repeat Activist Success at TreeHouse Foods?
Can JANA Repeat Activist Success at TreeHouse Foods?

5. Private Label Growth Opportunity

As the largest pure-play private-label manufacturer in the US, Treehouse Foods stands to benefit from consumer shifts toward more affordable private-label products, especially during economic downturns. JANA likely sees long-term value in Treehouse’s market position, even as the company navigates short-term industry headwinds like rising commodity costs and reduced consumer spending.

Can JANA Repeat Activist Success at TreeHouse Foods?
Can JANA Repeat Activist Success at TreeHouse Foods?

6. Potential for Strategic Transactions

JANA has a track record of driving successful sales or restructurings at other food companies, such as Pinnacle Foods and Whole Foods. Their continued buying may reflect expectations of a similar outcome at Treehouse Foods, whether through a sale, divestiture, or another transaction that could unlock significant value for shareholders.

7. Analyst and Valuation Perspectives

Some valuation models, such as GuruFocus’ GF Value, estimate that Treehouse Foods’ fair value could be double its current trading price, suggesting substantial upside if the company’s turnaround succeeds. While Wall Street analysts are cautious, with a consensus Hold rating, the activist involvement and restructuring efforts may shift sentiment if results improve.

JANA Partners continues to buy Treehouse Foods Inc. because it sees the company as undervalued, believes in its turnaround strategy, is actively involved in shaping its future, and anticipates that cost-cutting and strategic refocusing will drive improved performance and potentially significant shareholder returns

Comparative Analysis

The top five private label food manufacturers are Treehouse Foods, ConAgra Foods, The Kraft Heinz Company, Sysco Corporation, and The J.M. Smucker Company. ConAgra Foods is another major player, producing private label frozen meals, snacks, and baking mixes for supermarket chains and foodservice operators. The Kraft Heinz Company, known globally for its branded products, also manufactures a wide variety of private label condiments, sauces, snacks, and frozen foods for retailers worldwide. Lamb Weston which was spun out of ConAgra is the largest supplier of French fries to private label and restaurants in the US. Sysco Corporation, primarily a food distributor, is also a significant manufacturer of private label frozen foods, snacks, and sauces for both foodservice and retail clients. Rounding out the list, The J.M. Smucker Company produces private label jams, jellies, peanut butter, and other food products for grocery chains, complementing its well-known branded offerings. These companies stand out for their scale, diverse product portfolios, and strong partnerships with major supermarket and foodservice clients, making them leaders in the private label food manufacturing sector. Treehouse Foods Price to Sales and Price to Operating Cash Flow ratios compare well with this cohort.

Ticker

Company

Current Price

Market Cap ($M)

Debt-to -Equity

PS Ratio

PE Ratio without NRI

PB Ratio

Price-to-Opera ting-Cash-Flow

EV-to- EBITDA

CAG

Conagra Brands Inc

$21.57

10,296.71

0.93

0.88

9.18

1.17

5.65

16.89

KHC

The Kraft Heinz Co

$26.08

30,866.78

0.44

1.25

8.72

0.63

7.65

18.56

LW

Lamb Weston Holdings Inc

$54.80

7,733.14

2.61

1.23

16.76

4.73

9.86

11.12

SJM

JM Smucker Co

$95.72

10,186.20

1.26

1.17

9.46

1.67

8.42

-114.36

SYY

Sysco Corp

$74.29

36,012.20

7.60

0.45

17

18.74

12.52

11.68

THS

Treehouse Foods Inc

$20.72

1,046.36

1.04

0.32

10.31

0.69

4.12

11.65

JANA has significant experience with Activist Campaigns and Food Companies

JANA also invested in ConAgra in 2015, where it pushed for board changes and strategic restructuring, As an activist investor, JANA Partners played a significant role in pushing for strategic changes at Conagra Brands, which ultimately led to the sale of Ralcorp and the spin-off of Lamb Weston in 2016. JANA’s activism at the time was focused on improving margins, separating underperforming businesses, and unlocking shareholder value, and their involvement is credited with driving meaningful change, including the Lamb Weston spin-off

JANA Partners has a history of investing in several food companies beyond Lamb Weston. The firm played a significant activist role in the sale of Pinnacle Foods in 2018 and was instrumental in the acquisition of Whole Foods by Amazon in 2021, having held a substantial stake in Whole Foods.

Overall, JANA Partners is known for targeting underperforming or undervalued food sector companies, acquiring sizable stakes, and then driving management or strategic changes to unlock shareholder value.

Insiders have been buying the company stock in the recent months. This is a good sign.

Can JANA Repeat Activist Success at TreeHouse Foods?
Can JANA Repeat Activist Success at TreeHouse Foods?

and so has the company.

Can JANA Repeat Activist Success at TreeHouse Foods?
Can JANA Repeat Activist Success at TreeHouse Foods?

Both the above action are strong signs of value.

Conclusion

Investing alongside activist guru investors like JANA Partners can be attractive because these firms have significant resources, access to company management, and a disciplined, value-driven approach that often targets undervalued companies with potential for change. Their involvement has sometimes led to lucrative outcomes, such as the sale of Whole Foods to Amazon and the acquisition of Pinnacle Foods by Conagra. However, while following guru investors can offer valuable insights and highlight promising opportunities, Guru Investing also carries risks. Individual investors may not share the same risk tolerance, objectives or investment timeline as these firms, and by the time their trades are publicly disclosed, much of the potential upside may already be reflected in the stock price. As a result, while tracking guru investors can be a useful way to generate ideas and understand market trends, it should always be complemented by independent research and a careful assessment of personal investment goals and risk tolerance. It should be understood that in this case a value crystallizing event (like a sale) may not occur for several years.

There is also the not insubstantial risk of a take under. A “take under” by an activist investor occurs when the investor acquires a significant minority stake in a publicly traded company and then pushes for the company to be sold or privatized at a price below its current market value. Minority shareholders may be squeezed out. Unlike a traditional takeover, which usually involves acquiring control or buying out the company at a premium, a take under involves advocating for a sale at a discount. Activists may argue that such a sale is necessary to unlock value, address underperformance, or resolve strategic challenges, even if some shareholders believe the company is worth more. To achieve this, activist investors often use public campaigns, negotiations, or proxy fights to influence management and other shareholders toward their preferred outcome.

This article first appeared on GuruFocus.

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